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Donald Trump and Tariff War With China: Nalad Trump has announced to reduce tariffs on China, which has led to a wave of relief in the global markets. He has retained Fed Chairman Jerome Powell.
Donald Trump has indicated to bend in tariff war with China.
Highlights
- Donald Trump announced to reduce tariffs on China.
- Fed Chairman Jerome Powell was retained in office.
- A wave of relief ran in the global markets.
Donald Trump and Tariff War With China: US President Donald Trump is now seen taking a soft attitude in tariff war with China. He has already put a break on tariffs with all other countries for 90 days. This attitude of Trump has raged a wave of happiness in the world. Global markets have breathed a sigh of relief. In fact, in the midst of tariff war that has been released for some time, Trump announced that he would not remove the US Federal Reserve chairman Jerome Powell from his post and reduce the 240% tariff of 240% imposed on China to a great extent.
Donald Trump and Powell controversy
For some time, Donald Trump had carried out sharp attacks on Federal Reserve Chairman Jerome Powell. He accused Powell of not lowering interest rates. Powell warned that Trump’s tariff policy could increase inflation in America. Because of this, there was a fear in the markets that Trump could remove Powell. But on Tuesday, Trump made it clear that I have no intention of removing Powell. I want him to be slightly active in reducing interest rates. This is the right time for this. Even if he does not do so, there is no end. This statement increased confidence in investors and the US stock markets rose.
Tariff cut on China
Trump put a heavy tariff of 240% on several products coming from China after becoming President again in January 2025. In response, China also imposed a tariff of 125% on American goods. This trade war reduced trade between the two countries and increased uncertainty in global markets. On Tuesday, Trump admitted that the tariff of 240% is very high. He said that this tariff will be low to a great extent. It will not be around that level, but will not be zero either.
Trump also said that China would have to make an agreement to continue trade with the US. His statement indicated that the business talks between the US and China are moving in the right direction. On the other hand, US Finance Minister Scott Besant said in a private program by JP Morgan Chase that the tariff war with China cannot last long. He hoped that the tension in this matter will soon be reduced. The event took place during a meeting of IMF and World Bank. After Besant’s statement, Wall Street’s major share indices bounced and Asian markets also saw a boom on Wednesday.
White House response
White House Press Secretary Caroline Lewitt said that work is going on towards trade agreement between the US and China. He told that the President and his team are creating an atmosphere for an agreement. The ball is moving in the right direction. However, China has not yet confirmed that it is involved in a formal conversation with the US.
